Most base metals decline with firmer dollar, supply outlook in focus

BEIJING, May 8 (Reuters) –Prices of most base metals slipped on Wednesday as a firmer US dollar made the greenback-priced commodity more expensive for buyers, while investors assessed the supply outlook for metals.

Three-month copper on the London Metal Exchange CMCU3 was down 1.1% at $9,917 per metric ton, as of 0135 GMT, reversing previous gains that pushed the contract to a nearly two-year high.

The most-traded June copper contract on the Shanghai Futures Exchange SCFcv1 was down 1.5% to 79,890 yuan ($11,062.49) a ton.

The dollar =USD was back on the front foot on Wednesdaymaking modest gains after earlier losses from renewed bets on Federal Reserve rate cuts this year, while the yen eased towards the 155-per-dollar level and kept intervention risks from Tokyo high.

The supply outlook for metals was also on investors’ radar, as raw material shortages of copper have been a key driver behind the recent rally.

Mining giant Freeport-McMoRan FCX.N is preparing to ship as much as 900,000 tons of copper concentrate starting in June from its Grasberg mine after positive talks with Indonesia to extend its export licence, Reuters reported on Tuesday.

LME nickel CMNI3 fell 2.2% to $18,840 a ton, tin CMSN3 shed 1.6% to $32,075, aluminum CMAL3 slipped 0.9% to $2,546.50, and lead CMPB3 moved 0.5% lower to $2,232.50, zinc CMZN3 lost 1.4% to 2,917.50.

SHFE zinc CMZN3 was down 0.6% at 23,195 yuan a ton, tin SSNcv1 slid 1.4% to 259,470 yuan, aluminum SAFcv1 fell 1.5% to 20,400 yuan, nickel SNICv1 lost 2.4% to 141,810 yuan, while leading SPBcv1 rose 0.8% to 17,835 yuan,.

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DATES/EVENTS (GMT)

0600 Germany March Industrial Output

1200 Brazil March Retail Sales

2350 Japan Bank of Japan to release summary

of opinions from board members at its

April 25-26 policy meeting

($1 = 7.2217 Chinese yuan)

Reporting by Siyi Liu and Mei Mei Chu; Editing by Sherry Jacob-Phillips

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